Question

If it rains a dealer in rain coats can earn Rs.$500$/- a day. If it is fair he will lose Rs. $40$/- a day. His mean profit if the probability of a fair day is $0.6$ is:

• A. Rs. $230$/-
• B. Rs. $460$/-
• C. Rs. $176$/-
• D. Rs. $88$/-

Answer 1

The correct option is C Rs. $176$/-

$MeanValue=\sum x\left(i\right)\ast P\left(x\right(i\left)\right)$
Mean profit $=0.4\ast 500+0.6\ast (-40)=176$.